PHILRECA opposes private for-profit takeover of electric cooperatives

For over 50 years, the National Electrification Administration (NEA) has had a solid partnership with electric cooperatives (ECs) in implementing the electrification program in rural communities.

Today, these 121 ECs serve more than 15 million households and businesses across the country, enabling millions of Filipinos to live a better life.

ECs have also paved the way for the development of rural communities, alleviating poverty and creating more opportunities for Filipinos living in the countryside.

As non-stock, non-profit, and service-oriented entities, ECs are committed to delivering electricity to underserved rural areas, often overlooked by profit-driven firms due to low financial viability.

This principle underpins Philippine Rural Electric Cooperatives Association (PHILRECA)’s stance against the private for-profit takeover of electric coops.

PHILRECA asserts that private for-profit takeover of electric cooperatives does not guarantee improved services for consumers, contrary to the conviction of proponents pushing for private sector takeover.

It also emphasizes that not all ECs present issues. According to the EC Overall Performance Assessment, which is conducted by NEA annually, majority of cooperatives are efficient in providing electricity to the communities they serve.

Results of the 2022 EC Overall Performance Assessment showed 93 electric cooperatives earned an “AAA” rating, the highest score given by the NEA, which indicates the power utilities’ full compliance across all criteria.

Of the 93 ECs that achieved an “AAA” rating, 31 attained a perfect score. Results also showed that 17 ECs have shown improvement in their overall performance, while only seven ECs regressed.

As such, PHILRECA calls for the national government’s continuous support of the 121 electric cooperatives, as they work toward achieving total electrification of the Philippines by 2028.

PHILRECA believes keeping the electric cooperatives as the national government’s solid partner for electrification is the best step to achieving this goal.